Background Note | HBS Case Collection | May 1998 (Revised February 2007)

Measuring Mutual Fund Performance

by Andre F. Perold and Markus Mullarkey


Examines various approaches to measuring mutual fund performance. The approaches include the use of risk exposure and the Sharpe Ratio, as well as the Morningstar star system for rating mutual funds. Applies the approaches to a variety of mutual funds to demonstrate the effect of using different metrics to measure fund performance.

Keywords: Investment Funds; Performance;


Perold, Andre F., and Markus Mullarkey. "Measuring Mutual Fund Performance." Harvard Business School Background Note 298-139, May 1998. (Revised February 2007.)